CDO Issuance Continues To Increase

Collateralized debt obligations rated by Moody's Investors Service set records for issuance and volume last quarter.

  • 22 Nov 2006
Email a colleague
Request a PDF

Collateralized debt obligations rated by Moody's Investors Service set records for issuance and volume last quarter. The number of rated transactions grew 14% to 172 from the second quarter. Compared to the third quarter of 2005, the number of new transactions grew 76%, according to the ratings agency. Moody's anticipates this momentum will continue to the end of the year. It predicts that all of 2006 will be about 55% more than last year's deals and volume.

Collateralized loan obligations, cash resecuritizations and hybrid CDOs made up about 50% of the new ratings in the third quarter and about 72% of new volume. There were 45 CLOs in the third quarter and 23 newly rated cash resecuritizations. For U.S. CDOs, about 48% of the collateral was corporate bonds, while 39% was structured debt.

The ratings agency, however, did not see as much utilization of loan-only credit default swaps as it had anticipated. It said it was used to a limited degree in synthetically referencing single-name loans in existing cash flow CLOs. Author Richard Michalek, v.p. and senior credit officer, was traveling and could not be reached. Suzanna Sava, analyst and a co-author, did not return a call.

  • 22 Nov 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 10,542 20 18.54
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.73
3 Citi 5,130 13 9.02
4 JP Morgan 4,681 6 8.23
5 Lloyds Bank 3,389 13 5.96

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 70,706.84 201 11.60%
2 Bank of America Merrill Lynch 60,472.76 166 9.92%
3 Wells Fargo Securities 48,082.68 138 7.89%
4 JPMorgan 48,046.47 137 7.88%
5 Credit Suisse 38,252.19 94 6.28%